I'm looking at my portfolio and one company is trading at 2 x eps. That's a 50% return per year. Maybe to an active trader it's too low, but to someone who doesn't want to swing trade, it has to be really tempting.
Another company just sold $20M of shares in the last two weeks at 25% more than it's trading for today. If it was a fair deal then, it's a great deal now.
Companies that hold portfolios are trading far below NAV. You literally cannot buy those holdings yourself at those prices.
Add the inflation problem the shorts have. They don't owe money, that is going down in value. They owe shares in things like miners, that produce goods that are going up in price.
Then, the US government is sending out enhanced baby bonuses, some of which will end up in stocks.
Shorts might win big or it could wipe some of them out, imo. Buying stock at a discount seems like a much smaller risk.
Is the system on the verge of breaking?
Submitted July 19, 2021 at 11:10AM by Y1OG4 https://ift.tt/3rhsbNe
